Auto Retail Agenda: 11 April 2023
09 April 2023
- HUGE FIRE AT JLR INCHCAPE PRESTON
- NO-WIN-NO-FEE LAWYERS TARGET CAR FINANCE
- UBS FORECASTS CAR PRICE PLUNGE – BUT LOOKERS’ MARK RABAN DISAGREES
- TRUST FORD WAKEFIELD TO CLOSE
- US TREASURY EV CREDITS ‘CLARIFIED’
- HYUNDAI DOMINATES WORLD CAR AWARDS (AGAIN)
- STOCKWATCH
- COMING UP: UK GDP
- BoE PLANS DIGITAL ‘BRITCOIN’
- CBI ‘NOT FIT FOR PURPOSE’
Huge fire at JLR Inchcape Preston
A major fire broke out last week at Inchcape Jaguar Land Rover Bluebell Way, Preston. The retailer confirmed that no one was hurt in the incident, and praised emergency services and support agencies in containing the damage.
Up to nine fire engines, two aerial ladder platforms and an expert drone team were in attendance from around 1am on Friday 7 April. By 6am, four engines and an aerial ladder remained in place. Locals were urged to keep their windows closed due to a significant amount of smoke.
The fire service said it did not believe the incident involved electric vehicles, but added a full investigation will confirm the likely ignition source in due course.
“It is obviously far too early to speculate on exactly what happened, however we are working in conjunction with various experts to determine the cause,” said Inchcape in a statement.
“As we work through this, the business will be closed temporarily and we will of course support our team and communicate with our customers throughout this period.”
No-win-no-fee lawyers target car finance
Claims companies and no-win, no-fee law firms are increasingly targeting motorists who have taken out car loans as they believe car finance “could be brewing the next big mis-selling scandal”.
Car finance has grown to be the second most popular type of household borrowing after credit cards, with 6.8m customers. However, complaints have also grown, with almost 11,500 to the Financial Ombudsman Service in 2022-23, up 87%.
Car finance is the third most complained about financial product, after blank accounts and credit cards – and 9 in 10 complaints were lodged by third parties (i.e. claims firms).
The proportion of FOS complaints about commission, fees and charges has increased from 24% in 2021-22 to 49% in 2022-23. It is understood claims firms’ confidence in the viability of car finance claims is growing – which is leading to an increasing number of ads for financial compensation on Google, Facebook and Instagram.
Motorists are also being targeted via email.
UBS forecasts new car price plunge – but Lookers’ Mark Raban disagrees
UBS analysts have warned improving chip supply and a slowing global economy will lead to a drop in new petrol and diesel car prices in the second half of 2023. This would make them significantly cheaper than EVs and potentially hamper the net zero agenda.
However, Lookers’ Mark Raban disagrees there will be a sudden glut of cheap ICE cars. OEMs have learnt lessons from the pandemic, he said and the move to agency adds further impetus to get supply and demand right. “They’re going to clog up their own balance sheets pretty quickly if they don’t.”
Trust Ford Wakefield to close
Auto Retail Network has learnt Trust Ford Wakefield will shut this week. The Ford Retail site is located on Calder Island Way, Denby Dale Road.
WORLD NEWS
US treasury EV credits ‘clarified’
Guidance on which electric cars qualify for the US Inflation Reduction Act’s consumer tax credit for new EVs – called 30D – have been released. The rules come into force on 18 April and are designed to incentivise domestic production and reduce overseas supply chains. However, because the rules are still so complex, fewer EVs are expected to initially qualify for the full $7,500 (£6,000) credit as a result, which could slow new EV sales.
A full list of qualifying vehicles – and the credit amount each will receive – will be published on 18 April at fueleconomy.gov. Only three OEMs – Ford, GM and Stellantis – have so far said they’ll have EVs that qualify for the full $7,500 credit.
Hyundai dominates World Car Awards (again)
The new Hyundai Ioniq 6 has been named World Car of the Year 2023 by 100 global jurors (including Auto Retail Network) – succeeding the 2022 winner, the Hyundai Ioniq 5. The streamlined Hyundai also won EV and design awards. Awards were presented on the opening morning of the retailer-run New York International Auto Show.
STOCKWATCH
Closing prices on 6 April 2023 and weekly change
Auto Trader Group 598.8p (-17.4p / -2.8%)
Caffyns 525.0p (n/c)
Halfords 167.4p (-7.4p / -4.3%)
Inchcape 748.5p (-26.0p / -3.4%)
Lookers 87.6p (+5.3p / +6.2%)
Motorpoint 134.75p (-0.25p / -0.1%)
Pendragon 17.0p (+0.45p / +2.6%)
Vertu 60.6p (+0.8p / +1.3%)
COMING UP
Thursday, RICS Housing Market Survey
Thursday, UK GDP
May 3, Radius Law annual conference: sign up now
MONEY MATTERS
BoE plans digital ‘Britcoin’
The Bank of England is accelerating plans for a ‘Britcoin’ digital currency by hiring a workforce of up to 30 people. The ‘digital pound’, which is now in the design phase, is expected to enter circulation by the end of the decade. It will not replace cash but could cut out the middleman during electronic payments.
Unlike bitcoin, it would not be a cryptocurrency, as it would be centrally controlled by the Bank of England.
CBI ‘not fit for purpose’
The CBI was rocked by further scandals last week – and commentators are now questioning the future of the business lobby group, as sector-specific trade bodies (such as the SMMT) have usurped the CBI’s umbrella role. “Maybe there’s a role for a business champion able to corral disparate companies and ministers on universal issues,” said one commentator. “But the ideal one would be small, sharp and effective. Is that the bloated, scandal-hit CBI?”
Tags:
Bank of England, Car Finance, CBI, EV tax credits, Hyundai, Inchcape, IRA, JLR, Lookers, Mark Raban, Trust Ford, UBS, World Car Awards 
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